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India's Battery Material Boom Takes Off
4 Nov
Summary
- Global battery needs to hit 3,500 GWh by 2030.
- India's PLI scheme commits ₹45,000 crore to battery manufacturing.
- Two Indian firms are expanding into lithium-ion electrolytes and iron phosphate.
The global demand for battery manufacturing materials is surging due to the shift towards electric vehicles and energy storage systems, with worldwide battery requirements expected to reach 3,500 GWh by 2030. China is projected to lead with 2,000 GWh, while the rest of the world will contribute 1,500 GWh.
India is actively developing its domestic battery ecosystem through the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, committing approximately ₹45,000 crore to local manufacturing. This initiative is enabling two Indian chemical companies to expand their roles in the battery materials supply chain.
Neogen Chemicals is building a significant presence in lithium-ion battery electrolytes and lithium salts, aiming for ₹1,500 crore in its battery chemical business by FY28. The company is leveraging opportunities in both domestic and international markets, including supplying non-FEOC compliant lithium salt to the US under the Inflation Reduction Act.
Sudeep Pharma is scaling its battery chemical business with a focus on battery-grade iron phosphate, a precursor for LFP batteries. With a ₹300 crore capex, the company targets initial commercial operations by April 2027, focusing on exports to South Korea, Europe, and the US, and plans to expand its capacity significantly by FY30.
Both Neogen and Sudeep are navigating global supply chain diversification efforts, particularly concerning US regulations that restrict materials from Foreign Entities of Concern (FEOC). Their progress hinges on successful capacity utilization, customer approvals, and efficient execution of expansion plans.
